The Skills You Need to Be Financially Successful

What skills do you need to be financially successful?

Financial goal-setting

Organization

Investing

Save up for retirement

Being financially smart takes more skills than just paying your expenses and doing tax computations in the Philippines. It is an attitude that involves a lot of practices. You will need to develop your ability to plan, control your impulses, make concrete goals, and find a purpose for your savings.

Financial Goal-setting

Living a life without purpose is an incomplete one. You can apply this concept to your finances. If you want to increase your cash worth, then you have to take the time to think about what you actually want to do.

If you have trouble writing down your own goals, this list could give you concrete ones so you can start.

Have more than one source of income

Besides your day job, what else can you do to earn money on the side? You can choose to start a small business, freelance, or rent out unused spaces in your home.

Stop hoarding

You may buy unnecessary things impulsively as a response to stress and as a solution to different life problems. By doing this, you end up spending money on things aren’t fiscally responsible. Remember, you will need to use the rest for expenses such as BIR form filing. Additionally, you could accumulate debt from constant credit card use.

Have a fund for emergencies

You never know what might happen to you living in the Philippines. Do your tax computations, subtract your expenses, and allocate money for a rainy day. You need to prepare for emergencies by having a dedicated fund.

Pay everything on time

One of the most important things you will have to spend on as an adult is your taxes. You only allotted a certain period to pay by the government, and you have to prepare the right documents for it. Taxumo Premium can do this for you. By subscribing to it, you will never be late with your tax submissions again. Let Taxumo Premium handle your taxes so you can focus on your financial goals!

Organization

As a working Filipino adult or freelancer with your own income, having organization skills is non-negotiable. You have to worry about bills, BIR form filing, receipt tracking, credit card payments, and more. If you want to be financially successful, you need to be prepared to put on the work to more efficient with your different responsibilities.

To be more organized, these are tips you can follow:

Write down your daily and monthly budget.

Keep bill statements in one day.

Pay your bills the same day you receive them.

Set up a bank account dedicated to expense funds.

Use financial software to help you track (e.g. Microsoft Excel).

Investing

It is not enough that you save. Leaving money in the bank leads to stagnancy. To grow and be financially successful, you also need to re-invest it into cash-earning schemes. By taking the risk, you may get greater returns than you can imagine.

If you are a beginner, these investments that may be worth your money:

Mutual funds

A portfolio of stocks that are easy to deal with because you pay for them annually through a single transaction. Additionally, you and other investors manage it together.

Bonds

Bonds are bank-offered loans that promise a certain amount of return by offering interest rates you will need to pay annually or semi-annually.

Insurance

Protection against financial harm. This includes health, properties, and accidents.

Saving Up For Retirement

You, just like a lot of people, eventually want to enjoy retirement. The last thing you want is to still worry about having sufficient funds well into your 70s. Rather, you prefer to use that time to do all the things you could not do before; traveling, hanging out with family, or exploring hobbies. Thus, you need to be financially secure before retiring.

When it comes to preparing for retirement, there is no one correct way. Instead, it’s a mix of strategies, including:

Watching your health

Most elders will tell you that their current illnesses and bodily weakness take a financial toll. Thus, it is best to watch your health now so you don’t spend so much on hospital bills. Make sure to get regular doctor checkups, exercise, and eat right.

Setting up a retirement fund

Your retirement fund is the source of money you will use to pay for your future needs and wants. To have a good assessment of how much you cash you will need for it, these are the steps you should take now.

Track your repeatable expenses for one year. In the future, you will most likely pay for the same amount.

Know how much your future hobbies will cost.

Think of possible flexible expenses.

Looking through your assets

Your assets, physical or non-physical, can finance your senior lifestyle. Selling an unused car may give you cash that will pay for a vacation. Your non-physical investments can then produce passive income on the side for you.

Key Takeaway

Financial success, at the end of the day, is not about having money. It describes how well you see, keep, and use the cash you have worked hard for. All of these skills are meant to guide you on the road to success.

Author Evan Tan

Evan Tan is the Chief Marketing Officer of Taxumo. He is a communications professional with over a decade of local and regional professional experience. He also is a founding member of the Philippine LGBT Chamber of Commerce. Apart from his work and advocacy, he is passionate about traveling, working out, reading good books, and discovering vegan restaurants in and out of the country.